Philosophically, no one should have a problem if a player plays in the same division for one season no matter how good they get during that time.

FTR, I disagree with this statement. I've also been brainstorming new formats that generate competitive experiences based on how people are playing that day. For example, all one division first round. Everyone gets carded randomly. Card winners go in the top division for the second round. Card losers go in the bottom division. Tiered payout yields no motivation to bag the first round. Everyone in the top division cashes for more than the players in the middle division. Everyone in the middle division cashes for more than the players in the lowest division. Only card winners the second round cash in the lowest division. Something like that. Sort of a pooled match play system. No ratings required.